Parmax Pharma Receives 'Hold' Rating from MarketsMOJO, Despite Bullish Trend and Attractive Valuation

Parmax Pharma, a microcap pharmaceutical company, has recently received a 'Hold' rating from MarketsMOJO. The stock has shown a bullish trend and has improved from a mildly bullish position on January 15, 2024. This is supported by various factors such as MACD, Bollinger Band, and KST.
In terms of valuation, Parmax Pharma has an attractive ROCE of -0.7 and an enterprise value to capital employed ratio of 2.1. Additionally, the stock is currently trading at a discount compared to its historical valuations. Despite a negative return of -11.97% in the past year, the company's profits have increased by 75.3%.

However, Parmax Pharma's majority shareholders are non-institutional, which may raise concerns for some investors. The company also has weak long-term fundamental strength due to operating losses and poor growth in net sales and operating profit over the last 5 years. Furthermore, its ability to service debt is weak with a low EBIT to interest ratio of 0.66.

In the recent quarter, the company's performance has been flat with the lowest PBDIT and PBT LESS OI at Rs -0.76 cr and Rs -1.38 cr respectively. The EPS has also been at its lowest at Rs -3.66. This below-par performance has been consistent in both the long-term and near-term, with the stock underperforming the BSE 500 index in the last 3 years, 1 year, and 3 months.

In conclusion, while Parmax Pharma's stock may currently be in a bullish range, its weak long-term fundamentals and below-par performance may make it a 'Hold' for investors. It is important to carefully consider all factors before making any investment decisions.